How to Manually Enter a Pension Policy when the fund is Deemed Segregation

An SMSF using the segregated method to fully calculate ECPI will not need an actuarial certificate to claim ECPI if at all times during the income year the only retirement phase income streams paid were

• allocated pensions
• market-linked pensions
• account-based pensions

From 1 July 2017, a fund cannot use the segregated method at any time during a particular financial year if at the previous 30 June any member had a TSB of more than $1.6 million, and also had a retirement-phase pension from any fund (not necessarily this SMSF).

If the SMSF is eligible to use the segregated method and the fund was 100% in pension phase for the entire financial year, in SF360 you will have to manually enter a pension policy. This article demonstrates how to process this including updating the non-deductible percentage of general expenses and investment expenses.

1. Hover the cursor over the Members icon from the main toolbar, and select Fund Pension Policies. 



2. Select .

3. From the Request Actuarial Certificate drop-down menu, select Manually Enter Details. 

3. From the Actuary screen, toggle on "Was the fund in full pension phase for the income year" and "The fund is eligible to use the segregated method". Under Non-Deductible Expenses, for the General expense percentage, select the appropriate method of calculation. A brief explanation of each of the options is explained below. 

Simple Fund 360 provides the following options for calculating general and investment expenses:

.